College Credit

“The situation in auto loans is dangerous. But the situation developing in student loans is much worse. Here, loan totals have grown enormously – with wild abandon – over the past decade. The total amount of student loans has doubled since 2009, to more than $1.3 trillion. And why shouldn’t students borrow money like mad? Much like subprime car buyers, they have no intention to ever pay it back…. The U.S. Department of Education reports that 51% of students are currently not servicing their debts. That’s from data compiled last year. Since then, the number of students getting deferments has soared, thanks to aggressive marketing of Obama’s various college-loan programs. Not surprisingly, students who take deferments are much more likely to eventually default.” -Porter Stansberry